Pharos Holding considers the deal as a model for responsible privatization

Cairo, Egypt, November 11, 2008 (ME NewsWire) - Pharos Holding for Financial Investments, a leading Investment Bank in Egypt, announces it successfully contributed to the acquisition of 100% of Alexandria Sodium Carbonate Company (ASCC) by Solvay Group, the world's leading manufacturer of Sodium Carbonate, for 760 million Egyptian Pounds.   Pharos Holding's Investment Banking division acted as lead financial advisors to Solvay, while Pharos Securities was the mandated broker to execute the transaction.  Solvay officially took control of ASCC from the Holding Company for Chemical Industries (HCCI), an Egyptian State-owned holding company, on November 9th when ASCC's general assembly was convened to confirm the transfer of ownership and appoint the Solvay directors to the Board of ASCC.

ASCC is Egypt's sole producer of Sodium Carbonate and quicklime, with a production capacity of 130,000 TPA of Sodium Carbonate.  Sodium Carbonate is a widely used chemical whose largest application is in the glass manufacturing industry.  ASCC's plant was erected in 1974 near the city of Alexandria, and was thoroughly modernized at the end of the 1990's. 

The acquisition agreement is considered by Pharos Holding as a model for successful responsible privatization transactions.  "Solvay signed a Memorandum of Understanding with the General Trade Union of Chemical Workers and members of the Labor Union of ASCC to address the concerns of the labor force of ASCC and guarantee their rights" said Elwy Taymour, Managing Partner at Pharos Holding for Financial Investments.  "As ASCC has more than 1,000 employees, it was essential to reach an effective agreement with the union to ensure a successful transition and a positive work environment".  Solvay plans to rapidly expand the capacity of the plant to 200,000 TPA and considers producing up to 500,000 TPA in the long term.  "Solvay's planned expansion and significant future capital injections confirm the company's dedication to position ASCC as the leading producer of Sodium Carbonate in the MENA region." added Nadia Ellozy, Director at Pharos Holding. 

"Solvay welcomes this opportunity to become an industrial operator in Egypt, at the heart of a new market with exciting growth prospects," said Christian Jourquin, CEO of the Solvay group. "As it does in all countries where it operates, Solvay will endeavor to develop its Egyptian activities in a sustainable and responsible manner, so as to deserve the confidence of its clients and suppliers, its personnel and the Egyptian authorities," added Vincent De Cuyper, General Manager of the Solvay's Chemicals Sector. "With this acquisition, Solvay gains a privileged access to the very dynamic Egyptian market," commented Christine Tahon, Managing Director of Solvay's Strategic Business Unit Soda Ash and Related Products.

*Source: ME NewsWire

*View this release online and download high resolution images and logos at:

http://www.me-newswire.com/content/view/353/lang,en/

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About Solvay Group
SOLVAY is an international chemical and pharmaceutical Group with headquarters in Brussels. It employs more than 28,000 people in 50 countries. In 2007, its consolidated sales amounted to EUR 9.6 billion, generated by its three sectors of activity: Chemicals, Plastics and Pharmaceuticals. Solvay is listed on the NYSE Euronext stock exchange in Brussels (NYSE Euronext: SOLB.BE - Bloomberg: SOLB.BB - Reuters: SOLBt.BR). Details are available at www.solvay.com. 

About Pharos Holding for Financial Investments
Pharos Holding for Financial Investments is an Egypt-based Investment Bank offering a complete range of investment solutions to investors demanding the highest standards of service.  The firm was founded by its Chairman, Dr. Mohamed Taymour, in 2006 along with a group of financial industry veterans with vast experience in the Egyptian, Gulf and international financial markets.  Today, the firm offers Securities Brokerage, Research, Investment Banking, and Asset Management to institutional and high-net-worth investors in both the region and internationally.

For further information on Pharos Holding, please visit www.pharosholding.com

Contact:
Hassan Fahmi
Director of Marketing and Public Relations
4A Hassan Sabry Street, Zamalek 11211
Cairo, Egypt
Tel: +202 27373483
Fax: +202 27373482
Email: hassan.fahmi@pharosholding.com

© Press Release 2008